BILL NUMBER: SB 516	CHAPTERED  09/28/99

	CHAPTER   551
	FILED WITH SECRETARY OF STATE   SEPTEMBER 28, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 28, 1999
	PASSED THE SENATE   SEPTEMBER 2, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 1, 1999
	AMENDED IN ASSEMBLY   AUGUST 30, 1999
	AMENDED IN ASSEMBLY   JULY 12, 1999
	AMENDED IN ASSEMBLY   JUNE 30, 1999
	AMENDED IN SENATE   MAY 25, 1999
	AMENDED IN SENATE   APRIL 26, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Haynes

                        FEBRUARY 18, 1999

   An act to amend Section 10003 of, and to add Section 10006 to the
Unemployment Insurance Code, relating to employment services.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 516, Haynes.  Needy families:  job training.
   Existing law implements federal welfare-to-work grant program
provisions provided pursuant to the federal Balanced Budget Act of
1997 (P.L. 105-33).  Existing law requires the Employment Development
Department to distribute 85% of these federal grant funds to private
industry councils or alternate local administrative entities
designated by the Governor, as specified, and to distribute the
remaining 15% of these federal funds, at the direction of the
Governor, to state and local projects that will assist in moving
eligible program participants into unsubsidized employment.
   Existing law requires that those remaining 15% of federal funds be
distributed to employers, private nonprofit organizations, and
for-profit and public entities, and that proposals submitted for
state and local projects include, at a minimum, comments by the local
private industry council or alternate local administrative entity,
and the county welfare department, for a stated purpose.
   This bill would delete the references to "at a minimum" in the
requirement that proposals submitted for state and local projects
include comments by the local private industry council or alternate
local administrative entity, and the county welfare department, and
would provide for an exception to that requirement if one of those
entities is an applicant for grants under those provisions.
   This bill would require the Employment Development Department and
the State Department of Social Services, for purposes of fully
implementing this program and the CalWORKs program, to initiate, by
July 1, 2000, the adoption of regulations interpreting a specified
provision of federal law regarding state options in connection with
the provision of welfare services by charitable, religious, or
private organizations.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 10003 of the Unemployment Insurance Code is
amended to read:
   10003.  (a) Subject to subdivision (d), the department shall
distribute 85 percent of the federal welfare-to-work grant funds to
private industry councils or alternate local administrative entities
designated by the Governor, according to the variables defined in the
federal welfare-to-work program, and consistent with the following
formula:
   (1) A weight of 55 percent shall be given based on the relative
number, as determined pursuant to federal law, by which the
population in the area below the poverty line exceeds 7.5 percent of
the total population.
   (2) A weight of 30 percent shall be based upon the relative number
of adults residing in the plan's service area who are receiving
assistance under a state program funded in part through the federal
Temporary Assistance for Needy Families grant program or the federal
Aid to Families with Dependent Children Program for at least 30
months.
   (3) A weight of 15 percent shall be based upon the relative
number, as determined pursuant to federal law, of unemployed
individuals residing in the plan's service area.
   (b) Changes in the allocation formula established pursuant to
subdivision (a) that may be needed for subsequent fiscal years may be
implemented by the department only after public hearings have been
conducted regarding the proposed changes.  Any change in that
allocation formula may be implemented not sooner than 30 days after
notification in writing to the chairperson of the committee in each
house of the Legislature that considers appropriations, the
chairpersons of the appropriate committees and subcommittees in each
house of the Legislature that considers the State Budget, and the
Chairperson of the Joint Legislative Budget Committee, or not sooner
than whatever lesser time the Chairperson of the Joint Legislative
Budget Committee or his or her designee, may in each instance
determine.
   (c) Subject to subdivision (d), the department, at the direction
of the Governor, shall distribute the remaining 15 percent of federal
welfare-to-work grant funds, less the amount necessary to administer
the program, to state and local projects that will assist in moving
eligible participants into unsubsidized employment.  The Governor
shall take into special consideration the needs of rural areas in
distributing funds under this subdivision.  Funds allocated pursuant
to this subdivision shall be distributed to employers, private
nonprofit organizations, and for-profit and public entities.
Payments of these funds shall be contingent upon performance
outcomes.  Proposals submitted for state and local projects shall
include comments by the local private industry council or alternate
local administrative entity, and the county welfare department,
except in cases where the local private industry council or
alternative local administrative entity, or the county welfare
department, is an applicant for grants under this section, to ensure
that grants that are approved will be consistent with local plans for
moving eligible participants into unsubsidized employment.
   (d) Not more than 15 percent of federal welfare-to-work funds may
be retained by the department for the cost of state administration of
the welfare-to-work program.
  SEC. 2.  Section 10006 is added to the Unemployment Insurance Code,
to read:
   10006.  For the purposes of fully implementing this program and
the CalWORKs program, as established in Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, the Employment Development Department and the
State Department of Social Services shall initiate, by July 1, 2000,
the adoption of regulations interpreting the "charitable choice," or
state option provisions contained in Section 604a of Title 42 of the
United States Code.  The regulations shall be consistent with federal
law and the Establishment Clause in Amendment 1 of the United States
Constitution and in Section 4 of Article I of the California
Constitution.
